CEO Annual Letter

2025 WAS A YEAR DEFINED BY DISCIPLINED EXECUTION, OPERATIONAL MOMENTUM, AND STRATEGIC PROGRESS.

While the broader office sector continued its transition, we delivered strong performance against our business plan, advanced several strategic initiatives, and further strengthened our liquidity. Throughout the year, our commitment to quality, innovation, integrity, and community guided capital allocation decisions across our platform. The commercial real estate environment remained volatile, impacted by shifting workplace expectations, macroeconomic pressures, and uneven recoveries across our markets. Even so, we were encouraged by early signs of stabilization, increased leasing activity, and ongoing customer preference for high-quality, amenitized work environments. These trends reinforce our conviction that thoughtful design, community-focused placemaking, and operational excellence will define the leading real estate platforms of the future.

STRENGTHENING OUR OPERATIONAL FOUNDATION

Overall demand continues to favor higher-quality workspace, an area where Brandywine has long differentiated itself. In 2025, 55% of our new lease transactions were with tenants moving up the quality curve. Employers remain sharply focused on environments that attract talent, strengthen culture, and reinforce brand identity. Our operating platform built on service excellence, design leadership, sustainability, and hospitality remains a distinct competitive advantage and a key driver of our leasing success. In an era of recovering demand, capturing greater market share as a key imperative. We are pleased to report that in Philadelphia during 2025 our overall leasing activity as a percentage of market activity significantly exceeded our 15% market share. Even more importantly, we have grown net effective rents by over 5% annually since 2021, a clear indication of the increasing demand for high quality workspaces. Over the course of the year, we executed more than 1.5 million square feet of leasing activity. Our core portfolio ended the year 90.4% leased and 88.3% occupied, supported by strong retention and healthy new-tenant demand. We continued to achieve meaningful value capture, delivering rental rate mark-to-market gains of 20.9% on an accrual basis and 10.0% on a cash basis for the year. Tenant loyalty remained strong as well, with a full-year retention rate of 64% that exceeded our business plan goals. These operational fundamentals—combined with rising tour activity and a deepening tenant pipeline —underscore the momentum we are experiencing as the office sector continues its gradual recovery.

ADVANCING STRATEGIC MIXED-USE DEVELOPMENT

Our development strategy remains focused on creating dynamic, mixed-use environments that integrate commercial, residential, retail, hospitality, and public spaces. These projects create durable value, revenue diversification and reinforce the placemaking attributes that characterize our value creation approach. To advance our strategic initiatives at Schuylkill Yards, we acquired our partner’s preferred equity interests in both 3025 JFK and 3151 Market Street, creating a long-term value opportunity for our shareholders. With the office portion of our mixed-use tower at 3025 JFK 92% leased, the residential component at 94% leased, and a healthy leasing pipeline on our remaining available inventory, we are optimistic about creating long-term value. The Austin market is recalibrating following several years of elevated supply levels and pandemic-era expansion. While near-term conditions are challenging, we remain confident in Austin’s long-term growth trajectory. Uptown ATX—our master-planned, transit-oriented community—remains central to our long-term Austin market strategy. As part of our 2026 plan, we intend to recapitalize our Uptown ATX development joint ventures to further strengthen our financial flexibility and position this community for long-term success.

MAINTAINING FINANCIAL STRENGTH AND BALANCE SHEET DISCIPLINE

Financial flexibility has always been a cornerstone of our strategy, and 2025 reinforced that discipline. We ended the year with excellent liquidity, including no borrowings on our $600 million unsecured line of credit and no bond maturities until November 2027. Purchasing our partner’s preferred position in our Schuylkill Yards development temporarily increased our leverage levels, and in 2026 we plan to accelerate our asset recycling program, using the majority of proceeds to pay down debt, further strengthen our credit metrics, and potentially repurchase common shares as the current market valuation does not reflect our intrinsic asset value.

LOOKING AHEAD WITH PRAGMATIC OPTIMISM

Market conditions continue to stabilize. We remain encouraged by the leasing momentum building within our portfolio. The flight-to-quality trend remains durable, and high-performing properties like Brandywine’s will continue to differentiate, with visionary, mixed-use placemaking defining the next generation of great urban and town center districts. Looking forward, there will be limited new supply of office space built. Additionally, conversion of a significant amount of existing obsolete offices will accelerate the demand drivers focused on high-quality, well-located product that characterizes the Brandywine inventory. Our strategy remains clear and consistent. We will continue to operate with excellence, strengthen our balance sheet, increase our financial flexibility, and advance mixed-use destinations that deliver long-term value for all stakeholders. None of our progress would be possible without the trust, dedication, and partnership of our shareholders, Trustees, employees, partners, lenders, and other stakeholders. We are deeply grateful for your continued confidence and support.

Gerard H. Sweeney
President and Chief Executive Officer